Tuesday, June 26th , 2012 – Prime Minister Honourable Dr Kenny D Anthony has received authorisation from the Parliament to borrow US$ 50 million in the form of a five-tranched Fixed Rate Note from ECFH Global Investment Solutions Limited.
In presenting the motion in Parliament on Tuesday June 26th, 2012, the Prime Minister explained the decision was taken to use the ECFH Global Investment Solutions Limited rather and over-crowding the Regional Government Securities Market (RGSM) because of the nature of the market at this time brought on by the financial crisis and its impact on the region.
Dr Anthony says the agreement to raise the US$50 million will attract 6.01% interest.
“We have information to suggest that Saint Lucia stands an excellent opportunity of raising the required funds as the government and people of Saint Lucia continue to have an excellent reputation which we must guard very carefully as we enter into the market but as I indicated we now have to explore options outside of the boundaries of the Regional Governments Securities Market (RGSM), but under no circumstances should my comments be interpreted to mean that we are going to forsake that market because that is not my point. My point is that with a budget of such heavy borrowing this financial year, it would be necessary for us to be somewhat circumspect and do not overburden the RGSM at this time but certainly we will continue to invest in that market in the weeks and months ahead”.
The US$50 million to be raised on behalf of government by the ECFH Global Investment Solutions Limited will be used to finance the implementation of projects under the capital expenditure component of the 2012/2013 Budget.
Prime Minister Anthony told the Parliament, the bulk of the funds will be allocated to the Ministry of Infrastructure.
“Road rehabilitation alone EC$43, 92, 303.00, bridges and culverts EC$10,325,000.00, drainage EC$6,384,000.00, in addition of the amount to be borrowed we have allocated for the completion of the St Jude Hospital EC$14,916,938.00 and tourism marketing for which we have been borrowing consistently over the last ten or more years EC$35,700,000.00. Mr Speaker this only represents a percentage of the total loan outlay indicated in the budget so we will be returning to Parliament in due course to seek approval for additional borrowing”.
The Prime Minister says government has decided on what he called “As need basis” to borrowing for financing of the budget as it is in the country`s best interest at this time due to rapid changes in the marketplace.